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Pictet-Security, reasons to invest

December 2017

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Your clients can share in the growth potential of companies that offer innovative security solutions

The Security investment opportunity

Innovation, regulation and urbanisation are all underpinning long-term growth in the security sector. With so many innovative companies still at an early stage of development, we believe the long term case for investing in Pictet-Security
is highly compelling.

The global security market is predicted to be worth around USD280bn by 2021.
–
Source: G4S, Freedonia, 2013

The fund aims to capture these investment opportunities in this fast-moving sector wherever they are in the world, across all areas of the security industry, with a particular focus on physical security, security services and IT security.

Reasons to invest in Security

Invest in broad range of companies
An array of services is necessary to maintain our safety throughout the day. From testing for chemicals in our food to securing our e-payments online, the number of companies needed to answer these challenges offers a broad diversification.

A long-term investment opportunity We believe investments in the security sector offer the potential for growth at an attractive price. Many companies in this area enjoy high revenue growth, premium pricing, superior profit margins and strong cash flows. Investments in the security sector have generally proved resilient in recent years and we believe the Pictet-Security fund offers investors an attractive risk-return profile.

A socially responsible fund
The fund excludes companies involved in weapons, military contracting and nuclear power.

Why now?

Innovation, regulation and urbanisation are all underpinning long-term growth in the security sector.

The frequency and size of cyber-attacks are on the increase across sectors

Source: Bloomberg, Data Breaches, 2014
The global direct cost of cybercrime to the economy is now estimated at more than USD400 billion a year, which shows the size of the threat and has resulted in much-higher security spending.1

At the same time, health and safety legislation is becoming more complex and widespread, covering everything from food and cars to safety in the workplace.

We also expect to see increased demand for products and services that protect vital infrastructure in cities, with the world’s urban population in less developed countries set to double by 2050.2

Who is it for?

The fund could be suitable for investors who are prepared to invest for the long term and take a potentially higher risk with their investment.

What are the risks?

Past performance is not a guide to future performance.

The value and income of an investment can fall as well as rise and you may not get back the amount originally invested.

The fund may be invested in emerging markets. Investments in emerging markets can potentially be of higher risk and volatility than those in developed markets.

Investments are made in assets that are denominated in foreign currency and are not hedged back to the base currency of the fund.
Changes in exchange rates may therefore affect the value of the investments.

[1] Source: McAfee, Net Losses: Estimating the Global Cost of Cybercrime, June 2014
[2] Source: United Nations, Department of Economic and Social Affairs, Population Division: World Urbanisation Prospects, the 2014 Revision, 2014

This marketing document is issued by Pictet Asset Management. It is neither directed to, nor intended for distribution or use by any person or entity who is a citizen or resident of, or domiciled or located in, any locality, state, country or jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. Only the latest version of the fund’s prospectus, the KIID (Key Investor Information Document), regulations, annual and semi-annual reports may be relied upon as the basis for investment decisions. These documents are available on assetmanagement.pictet.

This document is used for informational purposes only and does not constitute, on Pictet Asset Management part, an offer to buy or sell solicitation or investment advice. It has been established on the basis of data, projections, forecasts, anticipations and hypothesis which are subjective. Its analysis and conclusions are the expression of an opinion, based on available data at a specific date. The effective evolution of the economic variables and values of the financial markets could be significantly different from the indications communicated in this document.

Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to change without notice. Pictet Asset Management has not taken any steps to ensure that the securities referred to in this document are suitable for any particular investor and this document is not to be relied upon in substitution for the exercise of independent judgment. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Before making any investment decision, investors are recommended to ascertain if this investment is suitable for them in light of their financial knowledge and experience, investment goals and financial situation, or to obtain specific advice from an industry professional.

The value and income of any of the securities or financial instruments mentioned in this document may fall as well as rise and, as a consequence, investors may receive back less than originally invested. Risk factors are listed in the fund’s prospectus and are not intended to be reproduced in full in this document.

Past performance is not a guarantee or a reliable indicator of future performance. Performance data does not include the commissions and fees charged at the time of subscribing for or redeeming shares. This marketing material is not intended to be a substitute for the fund’s full documentation or for any information which investors should obtain from their financial intermediaries acting in relation to their investment in the fund or funds mentioned in this document.

Hong Kong: this material has not been reviewed by the Securities and Futures Commission or any other regulatory authority. The issuer of this material is Pictet Asset Management (Hong Kong) Limited.
Singapore: this material is issued by Pictet Asset Management (Singapore) Pte Ltd. This material is intended only for institutional and accredited investors and it has not been reviewed by the Monetary Authority of Singapore.

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Some of the photographs published on this website have been taken by Stéphane Couturier, Magnus Arrevad, Lundi 13, Phovea, 13Photo, Magnum Photos, Club Photo Pictet.

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